Nash Equilibrium
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Scenario A Consider the following game: Payoffs are in millions of dollars.
Camden Inc.
Put Poison Pill
In Turbo Tech Dump Cash Assets
of Zamboni Tech
ABC Corporation Buy Turbo Tech -$100, -$1 $2, -$0.5
Buy Zamboni Tech $1, -$1 -$0.5, -$0.5
In the game in Scenario A,
"Poison Pill" is a dominant strategy for Camden Inc..
"Dump" is a dominant strategy for Camden Inc.
"TurboTech" is a dominant strategy for ABC Co.
"ZamboniTech" is a dominant strategy for ABC Co.
No firm has a dominant strategy.
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Solution Summary
The following solution finds the dominant strategies for the given game.
Solution Preview
In case, ABC corporation selects "Buy Turbo Tech", Best strategy for Camden is "Dump cash assets" as loss is lower. In case ABC corporation selects "Buy Zamboni Tech", best strategy for Camden is "Dumb cash assets" as loss is lower in this case. We find that ...
Education
- BEng (Hons) , Birla Institute of Technology and Science, India
- MSc (Hons) , Birla Institute of Technology and Science, India
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